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Several states have ordered a freeze on foreclosures by Ally Financial's GMAC mortgage unit, which has come under fire in court for using "robo-signers" who signed off on thousands of foreclosures attesting to the accuracy of the documents without having much personal knowledge of what they contained.

When Joe Homeowner bought too much house, essentially betting that home prices would go up, and losing his bet when they dropped, he was an irresponsible putz who shouldn't whine about being put on the street. But when banks bet billions on a firm like AIG that was heavily invested in mortgages, they were making the same bet that Joe Homeowner made, leaving themselves hugely exposed to a sudden drop in home prices. But instead of being asked to "suck it in and cope" when that bet failed, the banks instead went straight to Washington for a bailout -- and got it.

Rewritten bankruptcy provisions reduce indebted homeowners to servitude. What has become of the rule of law in the US?